Monday, August 1, 2011 This morning I awoke to the Internet news to learn that leaders representing Senate, House and Executive branch finally reached an acceptable plan to raise the Federal Debt Ceiling! All involved express confidence this plan will succeed in Congress and signed into law by President Obama. The approval will come just in the nick of time to avert financial disaster to everyday Americans. Reaction is mixed from "What's up with this? , Shazzam! "Mission Accomplished, Batman!"
A plethora of news items, The Washington Post, New York Times and other blog posts cover the historical vent. I immediately began to quickly scan many of these articles to "look for the specifics" of the "compromise" which both President Obama and Senate Majority leader touted before the cameras that this resolution is a relief and the fact ...no one got everything they wanted...is in spirit of an American tradition, compromise.
However, several articles and Op-Ed pieces indicate that the President capitulated on a number of "points" where the GOP "got everything they wanted." Some Democrats are furious as Tax Reform for the Wealthy, loopholes for large corporations (Oil), roll back of tax cuts for the wealthiest and no relief for the majority of American taxpayers is nowhere to be found in the plan.
Most Economic experts cite the tax issues (no reform or rise in revenue) coupled with huge cuts in "Government stimulus (spending) to stir job growth. The same economists cite that any aversion or decision to invest in the "Infrastructure" is a big mistake and short-sighted.
The GOP relentless contention that the Bush Tax Cuts to the wealthy will create jobs is time and again prove to be an absolute failure. There is no study or research in allowing "huge saving in individual income taxes for the wealthy is re-invested in the economy. Studies show it is far more likely if you 'Follow the Money," the net savings from a net 12% tax rate the path will end in a hedge fund investment or in the Cayman Islands.
By contrast any other tax savings of the remaining half of our American citizens or (95%) of our democracy will "spend" any windfalls acting as a true stimulus to the economy. At least a level of confidence that it will increase sales and profits for both small business and other corporate interests. Of course, we can only speculate as how much of this spending will inspire job creation.
My best guess is any number of jobs stimulated will far surpass any job creation by the wealthy. I apologize, but whenever this concept comes to mind, I can only visualize a group of housewives in affluent areas of California and Southwest do their part by "hiring additional illegal aliens as "landscapers, servants and housekeepers." This does not create jobs for Americans and it is a blatant slap in the face to their duty as a patriot and as an American!
By the way, I feel a level of affirmation in the criticisms to the compromise described in the reactions published today as they as they mirror many of the ideas I promoted earlier.
Are you listening Michigan Senators Carl Levin, Debbie Stabenow and Hon. House Representatives Sander Levin and John Dingell?
Does anyone know how I can send and have some confidence that someone in President Obama's office actually would receive this blog if sent?